400.2-706. Seller's resale including contract for resale. - Missouri Statutes

Seller's resale including contract for resale.

400.2-706. (1) Under the conditions stated in section400.2-703 on seller's remedies, the seller may resell the goodsconcerned or the undelivered balance thereof. Where the resaleis made in good faith and in a commercially reasonable manner theseller may recover the difference between the resale price andthe contract price together with any incidental damages allowedunder the provisions of this article (section 400.2-710), butless expenses saved in consequence of the buyer's breach.

(2) Except as otherwise provided in subsection (3) or unlessotherwise agreed resale may be at public or private saleincluding sale by way of one or more contracts to sell or ofidentification to an existing contract of the seller. Sale maybe as a unit or in parcels and at any time and place and on anyterms but every aspect of the sale including the method, manner,time, place and terms must be commercially reasonable. Theresale must be reasonably identified as referring to the brokencontract, but it is not necessary that the goods be in existenceor that any or all of them have been identified to the contractbefore the breach.

(3) Where the resale is at private sale the seller must givethe buyer reasonable notification of his intention to resell.

(4) Where the resale is at public sale

(a) only identified goods can be sold except where there isa recognized market for a public sale of futures in goods of thekind; and

(b) it must be made at a usual place or market for publicsale if one is reasonably available and except in the case ofgoods which are perishable or threaten to decline in valuespeedily the seller must give the buyer reasonable notice of thetime and place of the resale; and

(c) if the goods are not to be within the view of thoseattending the sale the notification of sale must state the placewhere the goods are located and provide for their reasonableinspection by prospective bidders; and

(d) the seller may buy.

(5) A purchaser who buys in good faith at a resale takes thegoods free of any rights of the original buyer even though theseller fails to comply with one or more of the requirements ofthis section.

(6) The seller is not accountable to the buyer for anyprofit made on any resale. A person in the position of a seller(section 400.2-707) or a buyer who has rightfully rejected orjustifiably revoked acceptance must account for any excess overthe amount of his security interest, as hereinafter defined(subsection (3) of section 400.2-711).

(L. 1963 p. 503 § 2-706)